If you’re already a flipper, you know that rehabbing properties can net you tons of money – if you’re willing to sink time and cash into a project. Of course, there’s always the potential for even bigger gains through flipping real estate. Make one of these simple changes today to increase your profits:
1. Learn to scrub. Many flippers throw money into replacing perfectly good fixtures that just need a little TLC. Learning a few simple methods for removing dirt and calcium buildup can save you tons of money that would otherwise be spent on needless replacements.
2. Get the jump on marketing. Even if you’re working with a real estate agent to sell your properties, consider doing some extra marketing yourself. Putting up ads on Craigslist and printing fliers will cost you very little money, but they can have a big impact. Since flipping real estate is largely about marketing, amp it up. You’ll see bigger profits and quicker turnaround times.
3. Overestimate your budget. Once you’ve come up with your final budget, add 15% or 20% to your estimate. This allows you to deal with expenditures that pop up during the rehab process – without wrecking the whole deal. If you go under budget, the extra money is just extra cash in your pocket!
4. Look into new areas. Flipping real estate can be done almost anywhere if the property is cheap enough. If rehabbing properties in your neighborhood has gotten stale, check out another part of town. Just make sure the commute is reasonable – otherwise you’ll spend the money you saved on the house in purchasing gasoline to drive back and forth.
5. Invest in a power washer. If you’re throwing tons of money at painting companies for the exterior of the property, consider getting a power washer instead. This simple tool that attaches to your hose may save you from having to hire painters.
If you’re already rehabbing properties, take the time to evaluate your current process. See if you can improve it. Whether you end up saving money or you sell the home more quickly, implementing even one of these tips should definitely make a difference for your business.
